Increase In Profitability Of Crude Oil And Natural Gas Production With An Implementation Of Digital Oilfield Technology
Crude oil and natural gas extraction companies around the world are investing heavily in digital oilfield technology to enhance crude oil and natural gas production. Digital oil fields integrate advanced software, hardware, and data analysis techniques to collect real-time data from the oilfield. They consist of visualization, product surveillance, integrated decision making, and remote communication systems. Digital technologies in oil fields include high-performance drill bits, advanced electrical submersible pumps, and 3D seismic imaging and reservoir modelling. Oilfields digitization facilitates efficient utilization of human resources and thus optimizes the profitability of oil production. This technology is changing the competitive landscape as an increase in production efficiency by 10% can yield an impact of $220 million to $260 million from oilfields in which oil accumulation has reached its saturation level. According to IHS CERA, digital oilfield implementation leads to increase in oil production by 2 to 8% and reduction in operating expense by 5 to 25%. CRUDE OIL AND NATURAL GAS MARKET TO GROW TO $3 TRILLION BY 2020 ACCORDING TO THE BUSINESS RESEARCH COMPANY The Business Research Company expects the global crude oil & natural gas market to grow from $2.3 trillion in 2016 to $3 trillion in 2020 at a compound annual growth rate (CAGR) of 6.3%. Asia Pacific was the largest region in the crude oil & natural gas market in 2016, accounting for $800 billion or 34.5% of the market. This was mainly due to high demand and consumption of energy from world's economic growth engines China and India.
According to The Business Research Company’s Consultant, Abdul Wasay the crude oil and natural gas industry is adopting EOR techniques to improve oil recovery factor, which was previously low at approximately 40% of may fields. Enhanced oil recovery is a tertiary method of recovery used to increase the amount of oil recovered from a particular deposit. Three main types of EOR include thermal recovery, gas injection, and chemical injection. Thermal recovery involves injection of steam to lower the viscosity of oil; gas injection uses natural gas, nitrogen or CO2; whereas chemical injection involves use of polymers. The application for CO2-EOR is gaining popularity because of the potential for sequestering CO2 while improving recovery of hydrocarbons. For instance, according to US department of energy, utilizing EOR methods can increase production from a well to up to 75% recovery.
Aramco was the largest competitor in the crude oil and natural gas extraction market with a revenue of $378 billion for the financial year 2014. To overcome the low oil price conditions prevailing in the crude oil and natural gas industry, Aramco is taking advantage of downstream industry. It is building additional refining capacity to capture more value from refining products. The company is also integrating energy and chemicals businesses to maximize income and reinforce its position in the global crude oil and natural gas industry. The crude oil and natural gas extraction industry comprises establishments engaged in crude petroleum and natural gas extraction and natural gas liquid extraction. To overcome the low oil price conditions prevailing in the crude oil and natural gas industry, Aramco is taking advantage of downstream industry. It is building additional refining capacity to capture more value from refining products. The company is also integrating energy and chemicals businesses to maximize income and reinforce its position in the global crude oil and natural gas industry. The chart below shows the year-on-year growth of the global crude oil & natural gas market during 2016 - 2020.
The crude oil and natural gas extraction industry is classified as follows- Crude Petroleum And Natural Gas Extraction industry includes companies carrying out exploration, development and production of petroleum and natural gas by using pumping technologies and systems. This industry also include companies producing hydrocarbons which are in a semi solid state from surface shales or tar sands. Crude Oil And Natural Gas extraction companies in this industry operate crude oil and natural gas wells on their own or a contract or fee basis. Natural Gas Extraction includes companies extracting liquid hydrocarbons from crude oil and natural gas field gases. These companies are also involved sulfur recovery from natural gas. Crude Oil And Natural Gas Market Global Briefing 2017 is a detailed report giving a unique insight into this market. The report is priced at $1000 for an individual user. To use across your office the price is $1500 and $2000 if you wish to use across a multinational company. About The Business Research Company Visit TheBusinessResearchCompany.com, mail firstname.lastname@example.org or call +447443439350 or +918897263534 or +919160996838 for more information on this and many other titles. The Business Research Company is a market research and intelligence company, which excels in company, market and consumer research. It has research professionals at its offices in the UK, India and the US as well a network of trained researchers globally. It has specialist consultants in a wide range of industries including manufacturing, healthcare, chemicals and technology. The Business Research Company's management has more than 20 years of varied business research experience. They have delivered hundreds of research projects to the senior management of some of the world's largest organizations.